A bankruptcy court judge signed off Wednesday on the proposed sale of Silicon Valley Bank’s investment-banking arm to a management group that includes the business’s founder, Jeff Leerink.
Judge Martin Glenn last week refused to approve the deal because of a provision that would have shielded Leerink and other executives from liability associated with SVB’s failure in March.
“You’re releasing them from everything,” Glenn told attorneys for SVB Financial, the bankrupt former owner of Silicon Valley Bank. “I can’t believe you’d even try to sneak this by me.”
Glenn said last week he would likely approve the sale once the deal is reviewed. Company officials have since added some restrictions to the legal releases, according to Reuters and Bloomberg.
The transaction includes equity financing of up to $100 million from hedge fund Baupost Group, along with a $30 million financing commitment from Leerink's team, according to a court filing. SVB Financial bought Leerink’s business in 2019 for $280 million.
The investment-banking business will be rebranded Leerink Partners as part of the deal, SVB Securities said in a release last month.